Blüm Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

WARRANTS (Tables)

9 Months Ended

Sep. 30, 2012

The Company has the following shares of common stock reserved for the warrants outstanding as of September 30, 2012:

	September 30, 2012
	Shares		Weighted Average Exercise Price
Warrants outstanding beginning of year		6,188,400	$	0.35
Warrants exercised		-		-
Warrants granted		523,333		0.45
Warrants expired		-		-
Warrants outstanding end of period		6,711,733	$	0.35

The weighted exercise price and weighted fair value of the warrants granted by the Company as of September 30, 2012, are as follows:

	September 30, 2012
	Weighted Average Exercise Price		Weighted Average Fair Value

Weighted average of warrants granted during the nine months whose exercise price exceeded fair market value at the date of grant	$	0.45	$	0.26

Weighted average of warrants granted during the nine months whose exercise price was equal or lower than fair market value at the date of grant	$	-	$	-

The following table summarizes information about fixed-price warrants outstanding: